The Lamprell Group has played an important role in the development of the offshore industry in the Arabian Gulf for over 30 years, providing increasingly specialised services to the offshore oil industry. Lamprell is managed by British nationals, with its corporate headquarters in Sharjah, one of the United Arab Emirates, Lamprell operates a full service jackup rig refurbishment facility in Sharjah and a modern, well equipped fabrication facility in Jebel Ali Free Zone, Dubai.

Lamprell located in the most important oil and gas region in the world, in one of the key commercial centres in the UAE.

Lamprell has its own core skilled and experienced workforce as well as access to additional skilled labour from the local labour supply market.


AIM Rule 26 Disclosure

This, in addition to the Group�s safety focused culture and experienced project management skills, helps to ensure customer satisfaction is maximised whilst risks are reduced.

Lamprell has built up its strong market position by offering a differentiated service to its clients based on safe working practices and completing projects on time, on budget and to a high quality. Accordingly, we believe that the Company has established a position of sustainable competitive advantage in the region.

Agreed Harry, but sector not flavour of the month at the mo, (see PFC) and I can't see the sector improving anytime soon so be careful.

That oil price reduction whilst good for such things as petrol prices certainly isn't for world trade which is still depressed. Also the big one is the venerability of fraking in the states, if the oil price continues to decline fraking become less and less viable and very serious repercussions for a possible new dept scenario similar to the financial crash in 2008.

A nice bounce off of 115p - whether it will be sustained though is debatable.

DISPOSAL OF LITWIN SERVICE BUSINESS

Lamprell (ticker: LAM), a leading provider of fabrication, engineering and contracting services to the onshore and offshore energy industry, announces that it has entered into an agreement for the sale of one of its smaller non-core service businesses, Litwin PEL LLC ('Litwin'), to Nauvata group of companies for an enterprise value of US$ 3.0 million. Litwin is an engineering and minor EPC contracting company that serves the oil and gas, chemical and petrochemical sectors in Abu Dhabi.

As previously announced, the Board has been reviewing the ownership of certain service businesses which do not form part of the Group's core business. Litwin has been operating in the UAE since 1991, currently employing approximately 80 staff, and was included among the group of entities acquired by the Company in 2011. In 2013, Litwin delivered an operating loss of US$ 5.3 million (based on the 2013 audited accounts). Audited gross assets for the Litwin business as at 31 December 2013 totalled US$ 9.1 million, however there is an overall net liabilities position in the business.

The Group will continue with its process to dispose of the other non-core service businesses but only if acceptable terms can be obtained and subject to Board approval.

Lamprell will use the proceeds from this disposal to support general working capital requirements on its core business streams.


- Ends -

ie LAM are feeling very squeezed for cash and therefore its continued viability in the longer term may be under threat

Alf, whats you opinion of the oil sector in general short/medium/long term?

The bounce continues....

Stan - in honesty, i'm not sure in the short term ..... opec (aka saudi) can happily live with low crude prices (forget the quality of the crude) and would be happy to see marginal shale oil/gas producers put to the sword ..... i don't think the saudis have much love for the russians either, and they too will be adversely affected

nevertheless, i recollect that the saudi budget is based on crude prices of $85, and though their (cash) reserves are massive, even they won't be too happy (i guess) to see crude significantly below that level for long

of course, we are also now heading into the winter (high consumption) period, so for sure there will be an increase in usage of both oil and gas for heating - and of course not forgetting the importance of oil and its by-products across the whole chemical process


i'm not sure if that quite answers your question, but i am reluctant to drivel on at length unless specifically asked to do so

PRE-CLOSE TRADING UPDATE

JP Morgan Cazenove Overweight 98.50 180.00 154.00 Reiterates

Not looking great at the moment. Very glad I took a small profit a while ago. Not yet tempted back in and am losing faith in broker recommendations.

Yes agreed!

I can't believe how lucky I was selling when I did - makes a refreshing change!!

.

Gap closed and chart looking up.

Well spotted skinny. Will have do dig around for some spare cash, but looks good.

Results look to be released about end of march, so looking even more attractive up to that date.

Yes - it was the chart that caught my eye and the directors buy - Director/PDMR Shareholding

Another Director purchase of 28,128 shares

Doesn't seem to want to hold above gap. Hoping for another try soon.

it's a generally weak day, and still crude keeps falling
i think the director's purchase, albeit quite small, is worth noting as it must have been just before the closed period cuts in

for obvious reasons, oilies and the support companies have been totally hammered of late, but i concur that crude prices should start to move gently upwards some time during 2015 as supply and demand match up once more

120p seems easily achievable in the near future. Small steps!